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Background

What is the Keystone XL Pipeline?
The Keystone XL Pipeline is a $13 billion project that will connect a secure and growing supply of Canadian crude oil with the largest refining centers in the United States, significantly benefiting the United States energy supply.The existing Keystone Pipeline system went online in June 2010 and brings crude oil non-stop from Canada to market hubs in the Midwest. A pipeline extension from Steele City, NE to Cushing, OK was added and went online in February 2011.The proposed Keystone XL Gulf Coast expansion project is an approximately 1,661 miles long, 36-inch crude oil pipeline that begins in Alberta and extends southeast through Saskatchewan, Montana, South Dakota and Nebraska. It incorporates the  Keystone Pipeline extension before continuing to refining centers in Texas area.

What are the benefits associated with the pipeline?
The Keystone XL project will bring significant economic benefits to the U.S. during construction and operations:

  • Private sector investment of more than $20 billion in the U.S. economy – at no cost to American taxpayers (food, lodging, fuel, vehicles, equipment, and other construction supplies and services),
  • The creation of about 20,000 construction and manufacturing jobs, which will increase the personal income of American workers by $6.5 billion,
  • Generating more than $585 million in new taxes for states and communities along the pipeline route,
  • More than $5.2 billion generated in property taxes during the operating life of the pipeline, and
  • Strengthening America’s energy security by increasing the supply of safe, secure and reliable oil from Canadian oil sands.


Is the Keystone XL pipeline safe?
Pipelines are the safest way to transport crude oil and petroleum products. Each year, hundreds of millions of gallons are safely transported on thousands of miles of pipeline in the U.S. The Keystone XL Gulf Coast Pipeline project will be the newest, strongest and most innovative pipeline in operation in North America, using the most advanced materials and technology. To move the same volume of Keystone XL oil into the U.S. market would take a train that was 25 miles long each and every day.

What plans are in place in the event of a leak or a spill?
Keystone XL will be monitored around-the-clock from a state-of-the-art control center. The pipeline will have 16,000 data transmitters that monitor pipeline pressure and operating conditions; transmitting data that will be updated by secure satellite every five seconds. If there is even the slightest change in pressure, pipeline operators can close valves to isolate a suspected incident location within minutes.Before beginning operations, Keystone XL will file an emergency response plan with the U.S. Department of Transportation Pipeline and Hazardous Materials Safety Administration. Similar emergency response plans are in place for the existing pipelines that currently delivers crude oil to Illinois and Oklahoma.Emergency response plans must be approved by regulators. The plans undergo regular testing so that the response is quick and effective in the event an incident does occur.  In addition, local personnel would respond and manage clean-up operations and would be responsible for securing an incident site.

Background
Keystone XL Pipeline Project:

  • The proposed KXL Gulf Coast expansion project is an approximately 1,661 miles long, 36-inch crude oil pipeline that begins in Alberta and extends southeast through Saskatchewan, Montana, South Dakota and Nebraska. It connects to a portion of existing pipeline through Nebraska and Kansas before continuing through Oklahoma to refining centers in the Port Arthur, Texas area.

Keystone Pipeline (Phase I)

  • Beginning operations in June 2010, Keystone Phase I transports crude oil to Midwest markets at Wood River and Patoka, Ill.
  • The U.S. portion of the Keystone Pipeline included the construction of 1,084 miles of new 30-inch diameter pipeline and 23 pump stations throughout North Dakota, South Dakota, Kansas, Missouri and Illinois.

Keystone Cushing Extension (Phase II)

  • Keystone Phase II is a 298 mile extension of Keystone Phase I that connects Steele City, NE, to Cushing OK.
  • Construction of the 36-inch diameter pipeline was completed in 2010, connecting Keystone Phase I to storage and distribution facilities in Cushing, a major crude oil marketing/refining and pipeline hub.

Keystone Gulf Coast Expansion (Phase III)

  • The proposed Keystone Gulf Coast Expansion Project is a 1,661 mile 36 inch crude oil pipeline that will connect a secure and growing supply of Canadian crude oil with the largest refining centers in the United States. It begins in Alberta and extends southeast through Saskatchewan, Montana, South Dakota and Nebraska. It connects to a portion of existing pipeline through Nebraska and Kansas before continuing through Oklahoma to refining centers in the Port Arthur, Texas area.

Keystone XL’s Economic Benefits:
The economic impact and long term benefits of the construction of the KXL pipeline are significant.

  • When completed, the KXL pipeline will have the initial capacity to deliver up to 900,000 barrels per day of crude oil to U.S. refineries.
  • The KXL pipeline project will create more than 20,000 well-paying construction jobs in 2011-2012.
  • In addition, TransCanada estimates that $138.4 million in annual property tax revenue will be generated for state governments and local entities where the pipeline is located.